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Bell Pottinger collapses after South African scandal

From BBC - September 12, 2017

Bell Pottinger has collapsed into administration in the UK after running a racially charged PR campaign in South Africa.

The troubled public relations firm put itself up for sale last week, but could not find a buyer.

The administrators BDO said the firm had been "heavily financially impacted" by the scandal.

The level of its losses and the inability to win new clients left the firm with no other option, BDO said.

Bell Pottinger was ejected from the UK's industry body last week for a PR campaign that emphasised the power of white-owned businesses in South Africa.

A string of clients, including HSBC, Investec and luxury goods company Richemont, cut ties with the firm over its work on the campaign.

Job losses

Bell Pottinger filed plans to appoint three BDO administrators on Friday, and the appointment became effective on Tuesday.

A BDO spokesman said: "Following an immediate assessment of the financial position, the administrators have made a number of redundancies.

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